You are here: Home - Insurance - News -

Homeowners upgrading their homes, but failing to update their insurance

0
Written by:
13/08/2012
Brits are increasingly choosing to upgrade their homes rather than move to a new place, but are still failing to update their home insurance.

According to MoneySupermarket, people often fail to inform their insurance provider when they have made structural improvements to their home, such as adding an extension or a conservatory, or converting a loft.

The research revealed a quarter of Brits would not update their insurer, with 21% saying they didn’t think it was necessary. 3% couldn’t be bothered and 2% would avoid it because it could increase the cost of their premium.

However, according to the comparison website, structural improvements to your home may not have a financial impact on your home insurance premium as many insurers only increase premiums once the value of your property increases significantly, typically £10,000 or more.

Despite this, failing to notify your insurer of structural changes to a property could void the policy, so if you are undertaking work, it is important to let them know.

Hannah Mercedes-Skenfield, insurance spokesperson at MoneySupermarket, said: “There is no doubt we are a nation that loves DIY and home improvement.

“We take pride in our homes and like to make the most of all available space. It will come as no surprise that every year, 200,000 of us carry out a loft conversion or the like to our homes.

“I urge all those people carrying out home improvement work, whether it is a luxurious loft conversion or comfortable conservatory, to inform their home insurance provider as soon as the works are complete and the room is being used.

“Work being carried out on a property would be covered by your builder’s insurance so it’s vital to check they have all the correct policies place.”

Mercedes-Skenfield also advises that you need to upgrade both the buildings and contents insurance if necessary, after the work on your home is complete.

Those concerned about cost, especially after forking out for those home improvements, should shop around for the best deal on home insurance cover; on average Brits can save £119 a year on a combined buildings and contents insurance policy.

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2198441-london-bank-of-england-with-lamp-post-in-foreground
BoE should ‘widen recovery measures’ – reports

The Bank of England (BoE) should expand its range of economic recovery measures, according to an outgoing member of the...

Close